Key facts
- Seoul shares closed lower on Tuesday, ending a five-day winning streak.
- The decline was attributed to profit-taking on large-cap stocks.
- Fading hopes for a deal to end the conflict between Iran and the United States contributed to the downturn.
- The KOSPI index fell 1.55% to 6,869.83.
- Institutions were net sellers of stocks, while foreigners and retail investors were net buyers.
Seoul shares concluded trading lower on Tuesday, breaking a five-day rally as investors took profits from major stocks. This downturn was influenced by diminishing expectations for a resolution to the conflict between Iran and the United States. The Korean won, however, strengthened against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) opened 2 percent higher but ultimately fell 108.11 points, or 1.55 percent, to settle at 6,869.83. Trading volume was moderate, with 399.04 million shares changing hands for a total value of 29.64 trillion won (US$20.9 billion). The number of declining stocks significantly outnumbered advancing ones, with 679 issues falling and 195 rising.
Institutional investors were net sellers, offloading stocks worth a net 784.9 billion won. Conversely, foreign and retail investors were net buyers, acquiring stocks valued at 91.4 billion won and 731.29 billion won, respectively.
Overnight, U.S. markets saw declines, with the Dow Jones Industrial Average shedding 0.51 percent and the tech-heavy Nasdaq composite falling 0.32 percent. Elevated oil prices continued to fuel inflation concerns. Hopes for a diplomatic agreement with Iran waned after U.S. President Donald Trump indicated he was not interested in extending an existing agreement with Iran.